Vietnam's tax authorities are ramping up scrutiny on the tax compliance of celebrities, particularly those engaged in online commerce and livestream sales. During a press conference held by the Ministry of Finance on January 7, 2024, Mai Sơn, the Deputy General Director of the General Department of Taxation, underscored the responsibility of all individuals—regardless of celebrity status—to declare their earnings and fulfill tax obligations.
According to Sơn, the regulations stipulate, "All businesses, organizations, and individuals, regardless of whether they are celebrities or not, must declare and pay taxes on incomes from online platforms." This statement reflects the broader goal of ensuring compliance among all income earners, particularly as the world adapts to increasing digital transactions and e-commerce.
With the emergence of livestream sales and the popularity of social media endorsements, tax authorities observe the burgeoning influence of celebrities across various online platforms. The General Department of Taxation has implemented several initiatives aimed at monitoring compliance within this sector, especially focusing on individuals operating within e-commerce. "The tax authority has been focusing on celebrities participating in livestream sales and affiliate marketing, and we have adopted measures to strengthen management," Sơn remarked.
Major cities, particularly Ho Chi Minh City (HCMC) and Hanoi, are at the forefront of these tax compliance efforts due to their thriving e-commerce markets. HCMC has already identified 35 celebrities involved with e-commerce whose compliance will be closely examined starting from 2025. This proactive approach is part of the government's strategy to enforce tax obligations more rigorously across all income-generators.
Outside of the different types of individuals being monitored, the statistics reveal the scale of the enforcement operations. Currently, approximately 76,428 individuals engaged in e-commerce activities are under review, with 30,029 already facing sanctions for tax violations. The amount retrieved from these violators stands at 1,223 billion VND. The figures paint a picture of the challenge the tax authorities face, as the e-commerce environment grows increasingly complex.
The General Department of Taxation aims to promote transparency within the tax system through improved data collection and sharing with e-commerce platforms. "Currently, data from all e-commerce platforms like Sendo, Lazada, Shopee, TikTok Shop can be extracted to carry out tax declarations and identify violations," emphasized Sơn. This enhanced data sharing will provide tax authorities with the necessary tools to monitor and enforce compliance efficiently.
Tax compliance for those who engage with social media and e-commerce is not merely about following regulations; it is also about fostering trust between the government and the public. By ensuring giants of influence also contribute fairly to the national budget, the authorities are working to establish equity between various sectors of the economy.
The focus on digital sales coincides with Vietnam's broader economic strategy to develop the e-commerce sector, which is rapidly becoming increasingly lucrative. By enforcing tax compliance among influencers and celebrities, the government is aiding the push for sustainable economic growth and ensuring everyone carries their fair share of responsibility.
The actions taken reflect the government’s commitment to impose equitable tax enforcement, ensuring all economic participants are accountable. It remains to be seen how compliant celebrities will be under these growing pressures, and whether these measures will significantly change their operational practices within the digital arena.
Given the noted figures, the total taxable revenue from activities related to online commerce for celebrities across both major cities reflects approximately 900 billion VND, with only 13 billion VND having been collected as taxes to date. It is clear there is potential for substantial revenue growth as more individuals are brought under the regulatory umbrella.
Looking forward, the General Department of Taxation is not only focusing on raw numbers, but also on cultivating awareness among those engaged with online activities. Bringing transparency and fairness is the ultimate goal; the message to celebrities and influencers is clear - compliance is mandatory, and contribution to public welfare is everyone's responsibility.